Could Trump force Janet Yellen out of her position?

Since Trump has come into power we have seen considerable movement on the US Dollar. His wild views on monetary policy and immigration caused many to question the safe haven of the Dollar.

Substantial value was wiped off the Mexican Peso and Asian Markets tumbled as the worries surrounding a limit on Chinese trade became closer to fruition.

Trump has heavily criticised Janet Yellen the Chair Lady of the Federal Reserve for keeping rates artificially low and there is speculation that he could fire Yellen and appoint a much more aggressive Chairperson. This would be a very bold move and could see a big swing in USD value.

I think it is unlikely we will see a rate hike until Trump officially enters the White House. More clarity is needed on his policies before an interest rate should be risen. I would expect Trump’s radical ideas to be toned down over the coming months and we will see a bit more stability returned to the markets. I think he realises some of his more outlandish ideas could be very detrimental the US economy.

Unemployment and CPI could cause US Dollar Movement

Today sees a host of data releases form the US. Starting with building Permits. Building Permits shows the amount of new construction permits filed and can be seen as a measure of growth. This is then followed by housing starts, a measure of the number of single family homes constructed and again this is a measure of growth in the US.

Next up is Initial Jobless claims which measures the level of individuals making claims for state unemployment insurance. It gives an indication as the strength of the US labour market.

Last up, we have Consumer Price Index figures. A measure of inflation. I would not expect too much movement on this release as I expect figures to be fairly stagnant.

All this data combined, however will no doubt cause swings for the US Dollar so keep your eyes peeled so you can take advantage of any spikes in your favour. You can email me at dcj@currencies.co.uk if youd like to discuss a currency requirement.

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